UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-21496
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Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund
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(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(Name and address of agent for service)
Registrant's telephone number, including area code: 630-765-8000
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Date of fiscal year end: November 30
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Date of reporting period: February 28, 2011
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC
20549. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS. The Schedule(s) of Investments is attached
herewith.
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a)
FEBRUARY 28, 2011 (UNAUDITED)
SHARES DESCRIPTION VALUE
--------------- -------------------------------------------------------------------- --------------
COMMON STOCKS - 86.0%
AUSTRALIA - 17.2%
1,247,959 Asciano Group (b) (c)............................................... $ 2,223,575
1,268,724 Australian Infrastructure Fund (b).................................. 2,518,925
1,017,808 MAp Group (b)....................................................... 3,202,121
4,082,942 SP AusNet (b)....................................................... 3,616,645
8,642,419 Spark Infrastructure Group (b) (d).................................. 10,207,204
767,437 Transurban Group (b)................................................ 4,172,511
--------------
25,940,981
--------------
CANADA - 8.3%
291,568 EnerCare, Inc. (b).................................................. 2,103,743
252,209 Northland Power, Inc. (b)........................................... 4,150,915
141,949 Pembina Pipeline Corp. (b).......................................... 3,223,092
77,017 TransCanada Corp. (b)............................................... 3,094,791
--------------
12,572,541
--------------
FRANCE - 11.1%
47,623 Aeroports de Paris (b).............................................. 4,221,049
186,220 GDF Suez (b)........................................................ 7,548,661
84,473 Vinci S.A. (b)...................................................... 5,084,746
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16,854,456
--------------
GERMANY - 6.1%
220,204 E.On AG (b)......................................................... 7,224,561
44,579 Hamburger Hafen Und Logistik AG (b)................................. 2,028,527
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9,253,088
--------------
ITALY - 10.1%
415,909 Atlantia SpA (b).................................................... 9,527,348
796,773 Enel SpA (b)........................................................ 4,747,696
223,323 Terna SpA (b)....................................................... 1,029,925
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15,304,969
--------------
JAPAN - 2.7%
895,000 Tokyo Gas Co. Ltd. ................................................. 3,993,338
--------------
LUXEMBOURG - 2.8%
165,119 Ses Global (b)...................................................... 4,250,676
--------------
SPAIN - 4.0%
303,829 Abertis Infraestructuras S.A. (b)................................... 6,104,579
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SWITZERLAND - 1.4%
5,220 Flughafen Zuerich AG (b)............................................ 2,119,518
--------------
UNITED KINGDOM - 7.6%
1,011,756 National Grid plc (b)............................................... 9,391,563
87,691 Severn Trent plc (b)................................................ 2,119,786
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11,511,349
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UNITED STATES - 14.7%
193,900 American Electric Power Co., Inc. (b)............................... 6,937,742
70,800 NextEra Energy, Inc. (b)............................................ 3,927,276
See Notes to Quarterly Portfolio of Investments Page 1
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
FEBRUARY 28, 2011 (UNAUDITED)
SHARES/
UNITS DESCRIPTION VALUE
--------------- -------------------------------------------------------------------- --------------
COMMON STOCKS - (CONTINUED)
UNITED STATES - (CONTINUED)
174,100 PG&E Corp. (b)...................................................... $ 8,019,046
44,088 SemGroup Corp. (b) (c).............................................. 1,415,666
74,300 Spectra Energy Corp. (b)............................................ 1,987,525
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22,287,255
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TOTAL COMMON STOCKS ................................................ 130,192,750
(Cost $112,612,967) --------------
MASTER LIMITED PARTNERSHIPS - 10.2%
UNITED STATES - 10.2%
78,716 Energy Transfer Partners, L.P. (b).................................. 4,315,998
130,077 Enterprise Products Partners, L.P. (b).............................. 5,671,357
89,681 Magellan Midstream Partners, L.P. (b)............................... 5,420,320
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TOTAL MASTER LIMITED PARTNERSHIPS .................................. 15,407,675
(Cost $10,717,044) --------------
PRINCIPAL RATINGS (e) STATED
VALUE DESCRIPTION MOODY'S S&P RATE (f) MATURITY (g) VALUE
--------------- ----------------------------- --------------- ---------- ------------ --------------
SENIOR FLOATING-RATE LOAN INTERESTS - 28.7%
CABLE & SATELLITE - 4.4%
$ 599,213 Charter Communications
Operating, LLC,
Incremental Term
Loan B-2................. Ba1 BB+ 7.25% 03/06/14 604,157
2,491,203 Charter Communications
Operating, LLC, Term
Loan C .................. Ba1 BB+ 3.56% 09/06/16 2,497,042
2,474,760 CSC Holdings, Inc., Term Loan
B-2, Extended Maturity .. Baa3 BBB- 2.01% 03/29/16 2,488,371
496,250 CSC Holdings, Inc., Term Loan
B-3, Extended Maturity .. Baa3 BBB- 2.01% 03/29/16 497,766
164,118 UPC Broadband Holdings B.V.,
Term Loan T ............. Ba3 B+ 3.76% 12/31/16 164,272
324,144 UPC Broadband Holdings B.V.,
Term Loan X ............. Ba3 B+ 3.76% 12/31/17 324,144
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6,575,752
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ELECTRIC UTILITIES - 4.8%
2,277,828 Astoria Generating Co.,
Acquisitions, LLC, Term
Loan B .................. B1 BB- 2.06% 02/23/13 2,268,716
488,758 Covanta Energy Corp.,
Synthetic Letter of
Credit .................. Ba1 BB 1.80% 02/09/14 485,459
See Notes to Quarterly Portfolio of Investments Page 2
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
FEBRUARY 28, 2011 (UNAUDITED)
PRINCIPAL RATINGS (e) STATED
VALUE DESCRIPTION MOODY'S S&P RATE (f) MATURITY (g) VALUE
--------------- ----------------------------- --------------- ---------- ------------ --------------
SENIOR FLOATING-RATE LOAN INTERESTS - (CONTINUED)
ELECTRIC UTILITIES - (CONTINUED)
$ 955,560 Covanta Energy Corp., Term
Loan .................... Ba1 BB 1.81% 02/09/14 $ 949,110
1,000,000 Equipower Resources Holdings,
LLC, Term Loan B ........ Ba3 BB- 5.75% 01/26/18 1,007,500
2,024,500 NRG Energy, Inc., Extended
Synthetic Letter of
Credit .................. Baa3 BB+ 3.55% 08/31/15 2,037,153
414,363 NRG Energy, Inc., Extended
Term Loan B ............. Baa3 BB+ 3.55% 08/31/15 416,953
775 NRG Energy, Inc., Synthetic
Letter of Credit ........ Baa3 BB+ 2.05% 02/01/13 772
87,076 NRG Energy, Inc., Term Loan Baa3 BB+ 2.00%-2.05% 02/01/13 86,702
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7,252,365
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ENVIRONMENTAL & FACILITIES SERVICES - 1.3%
1,990,000 EnergySolutions, LLC, Term
Loan .................... Ba2 BB+ 6.25% 08/13/16 2,013,631
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HEALTH CARE FACILITIES - 7.6%
64,832 CHS/Community Health Systems,
Inc., Delayed Draw Term
Loan .................... Ba3 BB 2.51%-2.56% 07/25/14 64,305
2,129,134 CHS/Community Health Systems,
Inc., Extended Term Loan Ba3 BB 3.76%-3.81% 01/25/17 2,133,778
1,258,841 CHS/Community Health Systems,
Inc., Term Loan ......... Ba3 BB 2.51%-2.56% 07/25/14 1,248,613
469,758 HCA, Inc., Term Loan B ...... Ba3... BB 2.55% 11/18/13 468,192
3,597,027 HCA, Inc., Term Loan B-2 .... Ba3... BB 3.55% 03/31/17 3,606,559
1,287,065 Health Management Associates
Inc., Term Loan B ....... B1 BB- 2.05% 02/28/14 1,277,054
997,468 Select Medical Corp., Non
Extended Add-On Term
Loan B................... Ba2 BB- 2.26%-4.25% 02/24/12 993,104
1,669,711 Select Medical Corp., Term
Loan B-1 ................ Ba2 BB- 4.06%-6.00% 08/22/14 1,673,885
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11,465,490
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INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 5.0%
777,748 Bicent Power, LLC, Term Loan,
First Lien .............. B1 BB- 2.31% 07/10/14 666,676
3,314,891 Dynegy Holdings, Inc.,
Synthetic Letter of
Credit .................. B1 B+ 4.02% 04/02/13 3,286,923
184,442 Dynegy Holdings, Inc., Term
Loan B .................. B1 B+ 4.02% 04/02/13 182,886
See Notes to Quarterly Portfolio of Investments Page 3
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
FEBRUARY 28, 2011 (UNAUDITED)
PRINCIPAL RATINGS (e) STATED
VALUE DESCRIPTION MOODY'S S&P RATE (f) MATURITY (g) VALUE
--------------- ----------------------------- --------------- ---------- ------------ --------------
SENIOR FLOATING-RATE LOAN INTERESTS - (CONTINUED)
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - (CONTINUED)
$ 933,333 Longview Power, LLC, Delayed
Draw Term Loan .......... B2 BB- 2.56% 02/28/14 $ 870,333
266,667 Longview Power, LLC,
Synthetic Letter of
Credit .................. B2 BB- 2.56% 02/28/14 248,667
800,000 Longview Power, LLC, Term
Loan B .................. B2 BB- 2.56% 02/28/14 746,000
102,041 NSG Holdings, LLC, Synthetic
Letter of Credit ........ Ba2 BB 1.80% 06/15/14 100,510
276,589 NSG Holdings, LLC, Term Loan Ba2 BB 1.80% 06/15/14 272,440
1,484,655 Texas Competitive Electric
Holdings Co., LLC,
Initial Term Loan B3 .... B2 B- 3.76%-3.80% 10/10/14 1,248,224
--------------
7,622,659
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MANAGED HEALTH CARE - 3.2%
697,942 IASIS Healthcare Corporation,
Delayed Draw Term Loan .. Ba2 B+ 2.26% 03/15/14 694,671
190,890 IASIS Healthcare Corporation,
Synthetic Letter of
Credit .................. Ba2 B+ 2.26% 03/15/14 189,996
2,016,456 IASIS Healthcare Corporation,
Term Loan ............... Ba2 B+ 2.26% 03/15/14 2,007,005
1,985,037 Vanguard Health Systems Inc.,
Term Loan B ............. Ba2 BB- 5.00% 01/29/16 1,997,940
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4,889,612
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MULTI-UTILITIES - 1.3%
2,000,000 KGEN, LLC, Synthetic Letter
of Credit ............... B1 BB- 2.06% 02/08/14 1,990,000
--------------
OIL & GAS EXPLORATION & PRODUCTION - 0.4%
204,772 SemCrude, L.P., Prefunded
Synthetic Letter of
Credit .................. NR NR 8.50% 11/30/12 205,626
356,895 SemCrude, L.P., Term Loan,
Second Lien ............. NR NR 9.00% (h) 11/30/16 360,686
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566,312
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WIRELESS TELECOMMUNICATION SERVICES - 0.7%
1,049,591 Windstream Corp., Term Loan
B2 ...................... Baa3 BB+ 3.06% 12/17/15 1,052,403
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TOTAL SENIOR FLOATING-RATE LOAN INTERESTS .......................... 43,428,224
(Cost $43,379,237) --------------
TOTAL INVESTMENTS - 124.9% ......................................... 189,028,649
(Cost $166,709,248) (i)
See Notes to Quarterly Portfolio of Investments Page 4
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
FEBRUARY 28, 2011 (UNAUDITED)
DESCRIPTION VALUE
----------------------------------------------------------------------- --------------
OUTSTANDING LOANS - (31.4)% ........................................... $ (47,500,000)
NET OTHER ASSETS AND LIABILITIES - 6.5% ............................... 9,892,285
--------------
NET ASSETS - 100.0% ................................................... $ 151,420,934
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(a) All percentages shown in the Portfolio of Investments are based on
net assets.
(b) All or a portion of this security is available to serve as
collateral on the outstanding loan. As of February 28, 2011, the
aggregate market value of the securities available to serve as
collateral on the outstanding loan was $132,915,447.
(c) Non-income producing security.
(d) This security is restricted in the U.S. and cannot be offered for
public sale without first being registered under the Securities Act
of 1933, as amended. This security is not restricted on the
Australian Exchange and trades freely without any additional
registration. As such, it does not require the additional disclosure
required of restricted securities.
(e) Ratings below Baa3 by Moody's Investors Service, Inc. or BBB- by
Standard & Poor's Ratings Group are considered to be below
investment grade.
(f) Senior Loans in which the Fund invests generally pay interest at
rates which are periodically predetermined by reference to a base
lending rate plus a premium. These base lending rates are generally
(i) the lending rate offered by one or more major European banks,
such as the London Inter-Bank Offered Rate ("LIBOR"), (ii) the prime
rate offered by one or more United States banks or (iii) the
certificate of deposit rate.
(g) Senior Loans generally are subject to mandatory and/or optional
prepayment. As a result, the actual remaining maturity of Senior
Loans may be substantially less than the stated maturities shown.
(h) Interest for the period commencing on November 30, 2009 and ending
on December 31, 2011 shall be payable, at the Borrowers' option, (i)
in cash at a rate per annum equal to 9% ("Cash Interest") or (ii) in
Payment-in-Kind interest at a rate per annum equal to 11% and,
commencing on January 1, 2012, shall be payable as Cash Interest.
(i) Aggregate cost for financial reporting purposes, which approximates
the aggregate cost for federal income tax purposes. As of February
28, 2011, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was
$23,355,708 and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value was
$1,036,307.
NR Not Rated
See Notes to Quarterly Portfolio of Investments Page 5
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
FEBRUARY 28, 2011 (UNAUDITED)
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of February 28,
2011 is as follows (see Note A - Portfolio Valuation in the Notes to Quarterly
Portfolio of Investments):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
2/28/2011 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Common Stocks*................................. $ 130,192,750 $ 130,192,750 $ -- $ --
Master Limited Partnerships*................... 15,407,675 15,407,675 -- --
Senior Floating-Rate Loan Interests:
Cable & Satellite........................ 6,575,752 -- 6,575,752 --
Electric Utilities....................... 7,252,365 -- 7,252,365 --
Environmental & Facilities Services...... 2,013,631 -- 2,013,631 --
Health Care Facilities................... 11,465,490 -- 11,465,490 --
Independent Power Producers & Energy
Traders.................................. 7,622,659 -- 7,622,659 --
Managed Health Care...................... 4,889,612 -- 4,889,612 --
Multi-Utilities.......................... 1,990,000 -- -- 1,990,000
Oil & Gas Exploration & Production....... 566,312 -- 566,312 --
Wireless Telecommunication Services...... 1,052,403 -- 1,052,403 --
-------------- -------------- -------------- --------------
Total Senior Floating-Rate Loan
Interests................................ 43,428,224 -- 41,438,224 1,990,000
-------------- -------------- -------------- --------------
TOTAL INVESTMENTS.............................. $ 189,028,649 $ 145,600,425 $ 41,438,224 $ 1,990,000
============== ============== ============== ==============
* See the Portfolio of Investments for country or industry breakout.
The following table presents the activity of the Fund's investments measured at
fair value on a recurring basis using significant unobservable inputs (Level 3)
for the period presented.
CHANGE IN NET
UNREALIZED
INVESTMENTS AT FAIR VALUE USING BALANCE AS OF APPRECIATION BALANCE AS OF
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) NOVEMBER 30, 2010 (DEPRECIATION) FEBRUARY 28, 2011
----------------------------------------- ----------------- ---------------- -----------------
Senior Floating-Rate Loan Interests $ 1,895,000 $ 95,000 $ 1,990,000
----------------- ---------------- -----------------
TOTAL $ 1,895,000 $ 95,000 $ 1,990,000
================= ================ =================
See Notes to Quarterly Portfolio of Investments Page 6
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
FEBRUARY 28, 2011 (UNAUDITED)
% OF TOTAL
INDUSTRY CLASSIFICATION(1) INVESTMENTS
-------------------------------------------------------- ---------------
Electric Utilities 19.9
Transportation Infrastructure 17.9
Oil, Gas & Consumable Fuels 13.3
Multi-Utilities 13.2
Construction & Engineering 2.7
Media 2.3
Independent Power Producers & Energy Traders 2.2
Gas Utilities 2.1
Road & Rail 1.2
Water Utilities 1.1
Diversified Consumer Services 1.1
-------------------------------------------------------- ---------------
Total 77.0
===============
(1) Represents the industry classification breakdown for the Core Component of
the portfolio, which includes the Common Stock and Master Limited
Partnership securities. It excludes the Senior Floating-Rate Loan Interest
component of the portfolio, which makes up the remaining 23.0% of the
portfolio.
See Notes to Quarterly Portfolio of Investments Page 7
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
FEBRUARY 28, 2011 (UNAUDITED)
VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION:
The net asset value ("NAV") of the Common Shares of Macquarie/First Trust Global
Infrastructure/Utilities Dividend & Income Fund (the "Fund") is determined daily
as of the close of regular trading on the New York Stock Exchange ("NYSE"),
normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If
the NYSE closes early on a valuation day, the NAV is determined as of that time.
Domestic debt securities and foreign securities are priced using data reflecting
the earlier closing of the principal markets for those securities. The NAV per
Common Share is calculated by dividing the value of all assets of the Fund
(including accrued interest and dividends), less all liabilities (including
accrued expenses, dividends declared but unpaid and any borrowings of the Fund)
by the total number of Common Shares outstanding.
The Fund's investments are valued daily in accordance with valuation procedures
adopted by the Fund's Board of Trustees, and in accordance with provisions of
the Investment Company Act of 1940, as amended (the "1940 Act"). The following
securities, for which accurate and reliable market quotations are readily
available, will be valued as follows:
Common stocks and other securities listed on any national or foreign
exchange (excluding the NASDAQ National Market ("NASDAQ") and the London
Stock Exchange Alternative Investment Market ("AIM")) are valued at the
last sale price on the exchange on which they are principally traded. If
there are no transactions on the valuation day, the securities are valued
at the mean between the most recent bid and asked prices.
Securities listed on the NASDAQ or the AIM are valued at the official
closing price. If there is no official closing price on the valuation day,
the securities are valued at the mean between the most recent bid and
asked prices.
Securities traded in the over-the-counter market are valued at their
closing bid prices.
All market quotations used in valuing the Fund's securities will be obtained
from a third party pricing service. If no quotation is received from a pricing
service, attempts will be made to obtain one or more broker quotes for the
security. In the event the pricing service does not provide a valuation, broker
quotations are not readily available, or the valuations received are deemed
unreliable, the Fund's Board of Trustees has designated First Trust Advisors
L.P. ("First Trust") to use a fair value method to value the Fund's securities.
Additionally, if events occur after the close of the principal markets for
certain securities (e.g., domestic debt and foreign securities) that could
materially affect the Fund's NAV, First Trust will use a fair value method to
value the Fund's securities. The use of fair value pricing is governed by
valuation procedures adopted by the Fund's Board of Trustees, and in accordance
with the provisions of the 1940 Act. As a general principle, the fair value of a
security is the amount which the Fund might reasonably expect to receive for the
security upon its current sale. However, in light of the judgment involved in
fair valuations, there can be no assurance that a fair value assigned to a
particular security will be the amount which the Fund might be able to receive
upon its current sale. Fair valuation of common stocks and other equity
securities will be based on the consideration of all available information,
including, but not limited to the following:
1) the type of security;
2) the size of the holding;
3) the initial cost of the security;
4) transactions in comparable securities;
5) price quotes from dealers and/or pricing services;
6) relationships among various securities;
7) information obtained by contacting the issuer, analysts, or the
appropriate stock exchange;
8) an analysis of the issuer's financial statements; and
9) the existence of merger proposals or tender offers that might affect
the value of the security.
If the securities in question are foreign securities, the following additional
information may be considered:
1) the value of similar foreign securities traded on other foreign
markets;
2) ADR trading of similar securities;
3) closed-end fund trading of similar securities;
4) foreign currency exchange activity;
5) the trading prices of financial products that are tied to baskets of
foreign securities;
6) factors relating to the event that precipitated the pricing problem;
7) whether the event is likely to recur; and
8) whether the effects of the event are isolated or whether they affect
entire markets, countries or regions.
Page 8
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (CONTINUED)
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
FEBRUARY 28, 2011 (UNAUDITED)
Foreign securities traded outside the United States are generally valued as of
the time their trading is complete, which is usually different from the close of
the NYSE. Occasionally, events affecting the value of such securities may occur
between such times and the close of the NYSE that will not always be reflected
in the computation of the value of such securities. If events materially
affecting the value of such securities occur during such period, these
securities will be valued at their fair value according to procedures adopted by
the Fund's Board of Trustees (see above). For certain foreign equity securities
a third party pricing service may be utilized to determine fair value. All
securities and other assets of the Fund initially expressed in foreign
currencies will be converted to U.S. dollars using exchange rates in effect at
the time of valuation.
The Senior Floating-Rate Loan interests ("Senior Loans")(1) in which the Fund
invests are not listed on any securities exchange or board of trade. Senior
Loans are typically bought and sold by institutional investors in individually
negotiated private transactions that function in many respects like an
over-the-counter secondary market, although typically no formal market-makers
exist. This market, while having grown substantially since its inception,
generally has fewer trades and less liquidity than the secondary market for
other types of securities. Some Senior Loans have few or no trades, or trade
infrequently, and information regarding a specific Senior Loan may not be widely
available or may be incomplete. Accordingly, determinations of the value of
Senior Loans may be based on infrequent and dated information. Because there is
less reliable, objective data available, elements of judgment may play a greater
role in valuation of Senior Loans than for other types of securities. Typically,
Senior Loans are valued using information provided by a third party pricing
service. If the pricing service cannot or does not provide a valuation for a
particular Senior Loan or such valuation is deemed unreliable, First Trust may
value such Senior Loan at a fair value according to procedures adopted by the
Fund's Board of Trustees, and in accordance with the provisions of the 1940 Act.
Fair valuation of a Senior Loan is based on the consideration of all available
information, including, but not limited to the following:
1) the fundamental business data relating to the issuer;
2) an evaluation of the forces which influence the market in which
these securities are purchased and sold;
3) the type, size and cost of the security;
4) the financial statements of the issuer;
5) the credit quality and cash flow of the issuer, based on the
Sub-Advisor's or external analysis;
6) the information as to any transactions in or offers for the
security;
7) the price and extent of public trading in similar securities (or
equity securities) of the issuer/borrower, or comparable companies;
8) the coupon payments;
9) the quality, value and salability of collateral, if any, securing
the security;
10) the business prospects of the issuer, including any ability to
obtain money or resources from a parent or affiliate and an
assessment of the issuer's management;
11) the prospects for the issuer's industry, and multiples (of earnings
and/or cash flows) being paid for similar businesses in that
industry; and
12) other relevant factors.
Short-term investments that mature in less than 60 days when purchased are
valued at amortized cost.
The Fund is subject to fair value accounting standards that define fair value,
establish the framework for measuring fair value and provide a three-level
hierarchy for fair valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:
o Level 1 - Level 1 inputs are quoted prices in active markets for
identical securities. An active market is a market in which
transactions for the security occur with sufficient frequency and
volume to provide pricing information on an ongoing basis.
o Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:
o Quoted prices for similar securities in active markets.
o Quoted prices for identical or similar securities in markets
that are non-active. A non-active market is a market where
there are few transactions for the security, the prices are
not current, or price quotations vary substantially either
over time or among market makers, or in which little
information is released publicly.
o Inputs other than quoted prices that are observable for the
security (for example, interest rates and yield curves
observable at commonly quoted intervals, volatilities,
prepayment speeds, loss severities, credit risks, and default
rates).
o Inputs that are derived principally from or corroborated by
observable market data by correlation or other means.
--------
1 The terms "security" and "securities" used throughout the Notes to Quarterly
Portfolio of Investments include Senior Loans.
Page 9
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (CONTINUED)
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
FEBRUARY 28, 2011 (UNAUDITED)
o Level 3 - Level 3 inputs are unobservable inputs. Unobservable
inputs may reflect the reporting entity's own assumptions about the
assumptions that market participants would use in pricing the
security.
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. A summary
of the inputs used to value the Fund's investments as of February 28, 2011, is
included with the Fund's Portfolio of Investments.
B. SECURITIES TRANSACTIONS:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Distributions received from a Fund's investments in Master Limited Partnerships
("MLP") generally are comprised of return of capital from the MLP to the extent
of the cost basis of such MLP investments.
Securities purchased or sold on a when-issued, delayed-delivery or forward
purchase commitment basis may have extended settlement periods. The value of the
security so purchased is subject to market fluctuations during this period. Due
to the nature of the Senior Loan market, the actual settlement date may not be
certain at the time of purchase or sale for some of the Senior Loans. The Fund
maintains liquid assets with a current value at least equal to the amount of its
when-issued, delayed-delivery or forward purchase commitments.
C. UNFUNDED LOAN COMMITMENTS:
The Fund may enter into certain credit agreements, all or a portion of which may
be unfunded. The Fund is obligated to fund these loan commitments at the
borrower's discretion. The Fund did not have unfunded delayed draw loan
commitments as of February 28, 2011.
Page 10
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the "1940
Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days
of the filing date of the report that includes the disclosure required by
this paragraph, based on their evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a-3(d)) that occurred during the registrant's last fiscal quarter
that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Macquarie/First Trust Global Infrastructure/Utilities Dividend &
Income Fund
------------------------------------------------------------------
By (Signature and Title)* /s/ James A. Bowen
------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date April 27, 2011
--------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ James A. Bowen
------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date April 27, 2011
--------------------
By (Signature and Title)* /s/ Mark R. Bradley
------------------------------------------------------
Mark R. Bradley, Treasurer, Chief Financial Officer
and Chief Accounting Officer
(principal financial officer)
Date April 27, 2011
--------------------
* Print the name and title of each signing officer under his or her signature.